Feds Cut Rate

[Nbadan]

Fed issues 0.25 cut to fed funds rate(4.25) and fed discount rate(4.75)

Fed Statement:

"Readings on core inflation have improved modestly this year, but elevated energy and commodity prices, among other factors, may put upward pressure on inflation. In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully.

Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth."

Wall street had been anticipating a .50 point cut to the Federal Funds rate, so the Dow is taking a hit today....Feds doing what it can to inject credit into the markets without letting inflation get out of control...but all these are just temporary fixes, what the market needs, and I'm not just talking Wall Street, I'm talking Main Street, is a major correction to free itself of a lot of the bad loans out there....

[JoeChalupa]

I was expecting a .25 cut just like Erin Burnett.

[xrayzebra]

Gee dan, I didn't know you were a financial expert. Would you
mind telling us where we can contact you so we can really
profit from your expertise...

[Twisted_Dawg]

I bet the Arabs, Chinese, Indians, and Japanese are pissed now that the dollar will drop further, making their holdings decline, their inflation rise and causing more international havoc with the dollar.

[JoeChalupa]

I bet the Arabs, Chinese, Indians, and Japanese are pissed now that the dollar will drop further, making their holdings decline, their inflation rise and causing more international havoc with the dollar.

But they can come over and shop till they drop!!

[smeagol]

Dan is an Economy Nobel Price candidate . . .

[BradLohaus]

Looks like the Fed is planning on a long series of rate cuts over the next few years like in 01-04 and they need to leave themselves some room for that.

I'll have to consult my local tarot card reader to know for sure...

Fox Biz Seeks Answers in the Occult
http://www.portfolio.com/views/blogs...-in-the-occult

[Nbadan]

After getting off to a fast start last month, holiday sales at some of the nation's largest retailers have slowed to an excruciatingly slow pace and mall traffic has dropped dramatically.

The results, coming two weeks before Christmas, jeopardize an already weak holiday sales period.

Chain-store sales rose a mere 0.2 percent for the week ended Dec. 8, following a disappointing 2 percent sales decline in the prior week, according to a report released Tuesday by the International Council of Shopping Centers.

"Consumers continue to be slow in finishing their holiday shopping," said Michael Niemira, the council's chief economist. "As such, we will be watching the next few weeks to determine how successful this holiday shopping season will be for retailers."

CNN

Are you all with the terra-ist or what? Common, pull out those Visas and Mastercards and head to the Mall...